UPDATE 1-OHL Mexico share buybacks on hold until after probe -CEO

MEXICO CITY, June 2 (Reuters) - Construction company OHL
Mexico will wait for the results of government
audits of its contracts before continuing negotiations on terms
of some of the agreements, Chief Executive Sergio Hidalgo said
in a conference call on Tuesday.

Shares in the company have been hit in the last month by
leaked recordings of individuals alleged to be OHL Mexico
officials, discussing overcharging for public works and making a
hotel payment for a state government official.

As a result, the company's current contracts are being
reviewed by the State of Mexico government and the federal
government.

OHL Mexico said the recordings had been manipulated to
discredit the company.

Hidalgo said the company could not activate a share
repurchase program until investigations into the recordings had
been completed.

"We would love, of course, to exercise that option and
actually to increase if possible," he said. "But we cannot
activate it until all investigations are over."

Fitch ratings agency said it was revising the credit rating
of OHL Mexico's Spanish parent company OHL for a
possible downgrade.

Shares in OHL Mexico rose 3.86 percent on Tuesday, to reach
22.34 pesos at 1.48 p.m. local time.
(Reporting by Cyntia Barrera and Tomas Sarmiento; Writing by
Max de Haldevang)